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How To Stock Market Works The stock market functions as a platform where investors and companies interact to buy and sell ownership shares in publicly traded companies. Here’s a detailed explanation of how the stock market works: 1. Participants: - Investors : Individuals, institutions, and entities looking to invest capital with the goal of earning returns through dividends and capital gains. - Companies : Businesses that issue shares of ownership (stocks) to raise capital for operations, expansion, or other financial needs. - Stock Exchanges : Marketplaces where stocks are bought and sold. Examples include NYSE, NASDAQ, London Stock Exchange (LSE), Tokyo Stock Exchange (TSE), etc. - Brokers and Dealers : Intermediaries who facilitate trades between buyers and sellers of stocks. - Regulators : Government agencies (e.g., SEC in the US, FCA in the UK) that oversee and regulate the stock market to ensure fair practices...